Franklin, TN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% per room
- Remittance due
- 20th of each month
- Operator discount
- 2% if paid on time
- Refund threshold
- 30+ continuous days
- Delinquency penalty
- up to $50/day
Summary
Franklin charges a 5% privilege tax on every hotel, motel, and short-term rental room billed to transient guests staying under 90 days, collected by the operator and remitted to the city recorder by the 20th of each month.
Hotel/motel privilege tax — Tax levy for the leasing, renting, and/or occupancy of each room: Five percent per room. Compensation (deduction) to operator for remitting tax on time: Two percent of monthly total. Delinquent taxes—Interest and penalty: Interest 12 percent per annum plus a penalty of one percent for each month or fraction of month the taxes are delinquent.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 30 Update 1).
Full Breakdown
The privilege tax applies to the 'consideration charged' for occupancy in any hotel, defined broadly to include hotels, motels, tourist courts, and similar transient lodging, but excluding a bed-and-breakfast with fewer than five rentable rooms. Operators add the tax to each guest invoice, collect it, and remit it monthly to the city recorder, keeping a 2% collection discount if paid on time. Guests who occupy a room for 30 or more continuous days receive a refund of tax already paid. STVR operators under chapter 13 collect the same room tax in addition to state sales tax.
Violations & Fines
Willful refusal by an operator to collect or remit the tax, or by a guest to pay it, is unlawful. Delinquent taxes draw 12% annual interest plus a monthly penalty, and violations carry civil penalties up to $50 per day.
Frequently Asked Questions
Does the hotel tax apply to Franklin's short-term rentals?
Are small bed-and-breakfasts exempt?
Sources & Official References
Other rules in Franklin
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